“SABMiller PLC is in preliminary talks with Ian Molson and Canada’s Onex Corp. about a possible joint offer to buy Molson Inc., threatening Molson’s proposed tie-up with Adolph Coors Co., according to people familiar with the situation,” writes Robert Frank in today’s Wall Street Journal.

“The talks are at a very early stage and may not result in a formal offer, these people said. Several hurdles remain for any possible deal even if the group decides to make an offer, including a contract between Molson and Coors that could act as a blocking position against any rival bidder.”

“According to people familiar with the matter, SABMiller is discussing a three-way tie-up with Onex and Ian Molson, Molson’s former deputy chairman. Financial terms haven’t been determined, but Ian Molson in July wrote to Molson’s board expressing interest in possibly making a bid for Molson totaling as much as US$4 billion.”

“SABMiller would likely be a major financial investor in the bid and have a strong operating role in the new company, say people familiar with the matter. SABMiller would also likely have the opportunity to buy full control of Molson at a later date, though terms are still being discussed, these people said.”

“Coors and Molson in July announced a merger that they said would generate more than $175 million in cost savings. The deal has faced skepticism from some Molson shareholders, who argue that Coors is getting effective management control of Molson without paying a premium.”

“Molson spokeswoman Sylvia Morin declined to comment on ‘speculation’ about SABMiller’s possible involvement in a rival bid with Ian Molson.”

“A big hurdle for any rival offer is Molson’s existing joint venture with Coors. The agreement calls for Molson to brew and distribute Coors Light in Canada, which has become a highly profitable business. Coors says it will pull Coors Light from Molson if it merges with another company — a threat that could be a spoiler for any competing offer. Industry executives also say Coors may be able to force Molson to produce Coors Light for 10 years, without sharing profits with Molson, if there is a change of control.”

“Molson hasn’t provided details on the change-of-control provisions in the contract with Coors. People familiar with the matter say SABMiller is reluctant to go forward with any possible offer until the contract terms are clarified.”